Retire at 50 plan for civil service

Ministers consider end to 'job-for-life' culture in the public sector

THE GOVERNMENT is working on a plan that would allow civil servants to take early retirement on half pay as part of a package of radical measures to cut the state's spending bill.

Ministers are also examining proposals to jettison the "job-for-life" culture in the civil service. The government wants to begin employing staff on private sector-style contracts after the current two-year recruitment embargo ends in 2011, according to senior cabinet sources.

When ministers meet tomorrow to make final decisions on a range of budget measures to be announced on Tuesday they will also discuss proposals for a 10% pay cut for all sitting TDs.

The civil service pay reforms and the so-called "political package" of cuts to politicians' pay and perks have been left to the end of the budget decision-making process for final sign-off by Brian Cowen and his cabinet colleagues.